A recent survey has revealed that US CFOs are being cautious in their investment plans in anticipation of the impending presidential election. In response to political uncertainty, 28% of CFOs are postponing, reducing, or abandoning investments, according to a quarterly survey conducted by Duke's Fuqua School of Business in collaboration with the Federal Reserve Banks of Richmond and Atlanta. This figure represents a decline from June 2016, when approximately half of chief financial officers disclosed comparable strategies. As CFOs prepare for 2024 and 2025, the survey underscores that they are closely monitoring the Federal Reserve's actions, potential economic slowdowns, and the presidential campaign. The survey covers spending plans, economic outlook, key concerns, and technology impacts.
CFO optimism remains moderate, with an average rating of 60.6 out of 100, unchanged from the first quarter but improved from the previous year. The 447 respondents predict a 1.8% growth rate for US GDP over the next year, slightly down from previous quarters. Additionally, 57% expect product prices to rise faster than pre-pandemic levels. CFOs also plan to increase automation, particularly through artificial intelligence, to enhance product quality, output, and reduce labor costs. This technological shift is seen as a substitute for human workers, aiming to improve efficiency and competitiveness in the business landscape.
